Checklist For Medical Corporation Legal Compliance

What to know about Legal Compliance with A
Medical Corporation

In many states, no individuals without proper license can own
any
share of medical corporations. Consequently, no medical practice can be
run by anyone or any company except for medical corporation who has
valid license. Therefore it is very important to know the related
medical law’s details and scopes whether you are a physicians or
licensed doctor. Or if you are already involved in this field of
business, you will need to know legal issues surrounding these health
professional practices.

A Look At Incorporation

If you are considering to form A Medical Corporation, there
are two
basic choices you have - the C or S corporations. In order to
begin, you will need to set up a desired corporation, and
then corporation needs a Certificate of Authorization from the
college of physicians and surgeons of the board. Medical corporations
are quite tricky in law so it’s advisable to consult a business
attorney who knows details about medical corporation law to draw
together your corporate
documents, which are various in their forms
and contents.

Fictitious Name Permit – If you are licensed physician or any
type of doctor who will
practice under a fictitious or assumed name in public, then you will
need to
apply this fictitious name permit. The suggested name can’t be
misleading, deceptive
or confusing to any other names that were previously issued. This
can be considered as DBA (Doing Business As) or a name that’s not the
legal name of a medical corporation. In the majority of cases, a person
will need to get an invented name permit from the Division of
Licensing/Medical Board. You may also need to do a “separate fabricated
name” filing with the local county recorder’s office.

Shareholders/Buy-Sell Agreement – As a medical professional
practitioners, there could be more than one person in the same pratice
facility. In case there are multiple doctors or medical corporation
owners, then it will be best for the company to get shareholders to
keep watch over the relationship with the partners. You never know what
will happen in the near future after the launch of the company. So
these mutual agreements will save persons a ton of money should the
relationship between the partners goes south.

Buy-sell agreement is an important
tool for
formalizing the relationships between the owners, and will determine
disputes between warring partners, so the the business can run
smoothly. This includes exit provisions in cases where partners are not
able to work together any longer.
You can use the business lawyer to handle buy-sell
agreements at every stage, negotiating and drafting new agreements,
thus
minimizing any litigating situations over the entire contract rights.

Federal Employer Identification Number – Employer
Identification Number (EIN) is also known as a Federal Tax
Identification Number, and is used to identify a business entity. You
can obtain your EIN from the IRS website easily.

Business Bank Accounts – After you’ve got the incorporation
articles and your EIN, make sure to open your bank accounts.

Pick Your Location – Consider over time and choose
right location for you and the partner. Once you do this, you
need
to look into the local zoning requirements to ensure that you can even
do a medical practice in that location. Check if there is any potential
issues with zoning of the area, such sewage treatment or medical trash
disposal. Also you need to talk to the planning/permits department for
this as well as other local requirements of your “proposed” location.

Real Property Lease – The office lease contract is very
important
and verify terms and conditions. This lease will bind you to that
specific location for quite some time. In worse case, you’ll still have
to pay rent even if the practice fails to make any real money. Ask a
business attorney if you are unsure of details that you have to follow.

Trademarks – Medical pratice is categorized as professioinal
field.
Therefore, if you plan on having a medical practice that relies on a
particular business name/trademark, you need to ensure that if anyone
else in that area already has the rights to use the particular name. Be
sure to check out the United States Patent and Trademark Office
website, to find anyone using the name for medical practices within
your region. If the Internet search yields no trademark issue, you need
to trademark. You can also hire I.P law firms team of trademark lawyers
and have them perform trademark search.

Local Business License – Contact your local state's business
department. Also be sure to get your business license in the city you
plan to operate in.

Seller’s Permit – If you plan on selling any type of
merchandise,
you’ll need a seller’s permit, which you’ll obtain from the State Board
of Equalization.

Employer Filings and Withholdings – As you hire employees,
make sure
to file a form with the Department of Labor in the
state.
After that, you will always have to be in compliance with the
employment law. Make sure to employ the services of a payroll company
to handle all the employee wage withholdings, in federal and state
level.

Workers’ Compensation and Other Insurance – Keeping employees
takes
a lot of work to manage. Workers' compensation is a form of insurance
providing wage replacement and medical benefits to employees injured
while being employed. You’ll need an insurance broker to deal with the
workers’ compensation insurance. According to law, you must have
workers’ compensation. You might want to research and compare the best
Workers' Compensation Insurance providers out there.